Article ID Journal Published Year Pages File Type
5100129 Journal of Economic Theory 2017 42 Pages PDF
Abstract
In the wake of growing awareness, decision makers anticipate that they might acquire knowledge that, in their current state of ignorance, is unimaginable. Supposedly, this anticipation manifests itself in the decision makers' choice behavior. In this paper we model the anticipation of growing awareness, lay choice-based axiomatic foundations to a subjective expected utility representation of beliefs about the likelihood of discovering unknown consequences, and assign utility to consequences that are not only unimaginable but may also be nonexistent. In so doing, we maintain the flavor of reverse Bayesianism of Karni and Vierø, 2013, Karni and Vierø, 2015.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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